The Kali River rises from the Greater Himalayas at Kalapaani at an altitude of 3600 metres, which is located in the Pithoragarh district of Uttarakhand. The river is named after Goddess Kali, whose temple is situated at Kalapaani near the Lipu Lekh pass at the boundary of India and Tibet. On its upper course from Kalapani to Tanakpur, the River Kali forms a continuous eastern boundary with Nepal. Having its origin in the trans Himalayan zone, the river is called Sharda in the plains.

The Kali River merges with the Gori Ganga at Jauljibi where a fair is held every year. The Kali River then joins the Saryu River at Pancheshwar and therefore the area around Pancheshwar is called ` Kali Kumaon`. Belonging to the Ganges river system, the Kali River finally merges with the Ganga.

The river has immense potential for irrigational purpose and generation of hydroelectricity and hence there has been a proposed dam at Pancheshwar..